If you buy a stock, you don`t have to worry about the financial viability of the person on the other side of the deal. The clearing house or exchange presents itself as a counterparty and guarantees the shares you buy or the funds you expect from a sale. The contractor`s general approach is that used when no participant in the contract is identified as the principal; Where an entity is identified as the contracting entity for a contract, the other party or contracting parties shall be identified as counterparties. Note that the alternative use of the notion of consideration, which is the equivalent of a particular person in a contract, is not the concept considered here, and these two concepts are inconsistent. A counterparty (sometimes counterparty) is a legal person, an unregistered entity or a collection of businesses for which there could be a financial risk.